NEDA: POGO Ban Will Not Have Significant Impact on Philippines’ GDP

NEDA Secretary Arsenio Balisacan noted that POGOs’ contribution to the country’s gross domestic product (GDP) is negligible. “Our estimates show that POGOs account for less than half of 1% of GDP, or 0.23% of GDP in 2023,” Balisacan said. These figures highlight that the impact of the ban on these operators will be minimal on the country's economy.

Balisacan also noted that POGOs accounted for about 11% of office occupancy in the first half of 2024. However, he stressed that the real estate sector was not greatly affected by their closure. "We note that the real estate industry has been reporting high office occupancy rates by the government and various government agencies, and this has helped improve the situation in the real estate sector," Balisacan added.

Aside from the economic aspects, Balisacan stressed the importance of the social and reputational risks associated with POGOs. Recent arrests prior to the ban have exposed their involvement in various serious crimes. This was one of the reasons why the decision was made to close these operators.

The POGO ban has found widespread support among government officials. Surigao del Norte 2nd District Representative Robert Ace Barbers called on Filipinos to help identify and eliminate illegal POGO workers who are on the run. Deputy Speaker David Suarez said SMS fraud cases have dropped dramatically since the ban was implemented. Senator Joel Villanueva is also pushing hard to repeal the POGO tax law.

Overall, the closure of POGOs will have a minimal impact on the Philippine economy, according to NEDA estimates. However, the social and reputational risks associated with their activities make the ban a necessary step for the country. Support from various government officials for the decision underscores the importance of protecting national interests and ensuring the safety of citizens.